SMR: Spot gold prices gained more than 1% on Thursday
MARKET RECAP
Spot gold prices gained on Thursday, touching an intra-day high of $1345/oz. The yellow metal prices closed at $1342.60/oz at the end of the session, gaining around 1.4%. On the MCX, gold prices (December contract) closed at `19603, slightly below its intra-day high of `19618 per 10 gms. Rebound in the gold prices yesterday was mainly on the back of sharp decline in the US Dollar Index (DX). The DX – a gauge against a basket of six currencies closed at 77.29 yesterday, down by 1%.
OUTLOOK
Gold prices will continue to take cues from the movement in the DX today. There is a lot of uncertainty over the amount of QE2 and hence we expect gold prices to remain firm today ahead of the weekend. The DX will continue to trade with a depreciation bias today as investor sentiment remain mixed over the next week’s crucial FOMC meeting.
On intraday basis, Spot Gold prices have support at $1337/$1328 whereas resistance is seen at $1351/$1360. Spot Silver prices shall find support at $23.82/$23.61 whereas resistance is seen at $24.18/$24.39 levels.
